[41 Pa.B. 6499]
[Saturday, December 3, 2011]

[Continued from previous Web Page]

Subchapter D. TAXICAB INSPECTIONS

Sec.

1017.31.	Biannual inspections by Authority.
1017.32.	TLD inspection sticker required.
1017.33.	Failure to appear for scheduled inspection.
1017.34.	Field inspections.
1017.35.	Failure to submit to field inspection.
1017.36.	Reinspection.
1017.37.	Inspection subsequent to vehicular accident or damage.
1017.38.	Change of vehicle.
1017.39.	License plate change.
1017.40.	Transfer inspection.
1017.41.	Attendance at scheduled inspection.
1017.42.	Prerequisites to inspection.
1017.43.	Approved models and conditions.
1017.44.	Reconstructed vehicles prohibited.

§ 1017.31. Biannual inspections by Authority.

 In addition to other inspections required or permitted by the act, this part or an order of the Authority, every taxicab must submit to at least two scheduled inspections by the Authority on an annual basis at a time and location designated by the Authority. Each scheduled inspection will consist of one of the following:

 (1) A compliance inspection.

 (2) A compliance inspection combined with a full State inspection.

§ 1017.32. TLD inspection sticker required.

 (a) The Authority will affix a TLD inspection sticker to the lower right hand side of the taxicab's windshield upon successful completion of the following inspections:

 (1) Each biannual compliance inspection as provided in § 1017.31 (relating to biannual inspections by Authority).

 (2) A reinspection as provided in § 1017.36 (relating to reinspection), but only if the existing TLD inspection sticker has already expired or will expire before the next biannual inspection as provided in § 1017.31.

 (3) A compliance inspection as provided in § 1017.2 (relating to preservice inspection).

 (b) A taxicab may not provide service unless a current TLD inspection sticker is properly affixed to the taxicab.

 (c) Each TLD inspection sticker will expire 6 months from the date it is affixed to the taxicab.

 (d) Only the Authority may conduct State inspections of taxicabs and affix certificates of inspection as provided in 75 Pa.C.S. § 4728 (relating to display of certificate of inspection).

§ 1017.33. Failure to appear for scheduled inspection.

 If a taxicab fails to appear for an inspection as provided in § 1017.31 (relating to biannual inspections by Authority), the certificate holder may be subject to a penalty through issuance of a formal complaint.

§ 1017.34. Field inspections.

 (a) Inspectors may stop and inspect taxicabs in operation, or appearing to be in operation, to ensure continued compliance with the act, this part or any order of the Authority.

 (b) Upon field inspection, an inspector may instruct a taxicab driver to drive the taxicab directly to TLD Headquarters for a compliance inspection if the inspector believes that the taxicab is not in compliance with this chapter and represents a public safety concern.

§ 1017.35. Failure to submit to field inspection.

 (a) Upon instruction by an inspector, a taxicab driver shall stop the taxicab and permit the inspector to conduct a field inspection of the taxicab.

 (b) If a taxicab driver fails to permit a full field inspection, the taxicab may be placed out of service, as provided in § 1003.32 (relating to out of service designation).

§ 1017.36. Reinspection.

 If a taxicab fails any Authority inspection or is removed from taxicab service for any reason, the taxicab may not resume taxicab service until a compliance inspection is successfully completed by the Authority.

§ 1017.37. Inspection subsequent to vehicular accident or damage.

 (a) A taxicab is prohibited from providing service after it is involved in one or more of the following:

 (1) An incident that shall be reported to the police under 75 Pa.C.S. § 3746 (relating to immediate notice of accident to police department).

 (2) An incident resulting in damage to the taxicab which requires replacement or repair to any of the following parts of the taxicab:

 (i) Airbags or passenger restraints.

 (ii) An axle.

 (iii) The vehicle's frame.

 (3) An incident involving any contact with a taxicab which renders it incapable of being legally operated on a highway.

 (b) The certificate holder and driver shall contact the police and then the Manager of Enforcement immediately upon the occurrence of any incident in subsection (a) and the certificate holder shall remove the taxicab from service.

 (c) For a vehicle to reenter service after the occurrence of a condition referenced in subsection (a), the certificate holder shall schedule a compliance inspection with the Authority. The Authority will not charge a fee for an inspection conducted under this subsection.

 (d) On or before the scheduled time for the Authority compliance inspection required under subsection (c), the certificate holder shall provide the Authority with a written list of the repairs made to the taxicab subsequent to the incident which caused it to be removed from service. The list of repairs required under this subsection shall be provided on the letterhead of the repair facility and executed by the repairman.

§ 1017.38. Change of vehicle.

 (a) In addition to the requirements in §§ 1013.2 and 1013.3 (relating to attachment of a medallion; and removal of a medallion), a medallion may not be attached to a different vehicle unless the vehicle has completed a compliance inspection.

 (b) A partial-rights taxicab may not be replaced with another vehicle nor may an additional vehicle be added to a partial-rights certificate, unless the vehicle has completed a compliance inspection.

§ 1017.39. License plate change.

 (a) A taxicab may not be operated with a license plate other than that which was assigned and attached to the taxicab at the time of its last compliance inspection.

 (b) A license plate other than the one referenced in subsection (a) may be attached to a taxicab only after email notification to the Manager of Enforcement. The notification must include the reason the replacement is to be made and the new license plate number.

§ 1017.40. Transfer inspection.

 A taxicab subject to the transfer of a certificate or medallion or from one certificate holder to another must have completed a compliance inspection before it provides taxicab service.

§ 1017.41. Attendance at scheduled inspection.

 (a) The certificate holder or its attorney-in-fact shall attend each taxicab inspection conducted by the Authority, except field inspections as provided in § 1017.34 (relating to field inspections).

 (b) The attorney-in-fact shall appear with the original power of attorney, which shall be in compliance with § 1001.28 (relating to power of attorney).

§ 1017.42. Prerequisites to inspection.

 (a) The Authority will not initiate an inspection of a taxicab, except as provided in § 1017.34 (relating to field inspections), if the taxicab is out of compliance with the act, this part or an order of the Authority.

 (b) The Authority will not initiate an inspection of a taxicab, except as provided in § 1017.34, if the certificate holder is out of compliance with the act, this part or an order of the Authority, including the following sections:

 (1) Section 1011.3 (relating to annual rights renewal process).

 (2) Section 1011.5 (relating to ineligibility due to conviction or arrest).

 (3) Section 1011.7 (relating to payment of outstanding fines, fees and penalties).

§ 1017.43. Approved models and conditions.

 The Authority will publish a list of approved makes and models of vehicles permitted for use as taxicabs, which will be available at www.philapark.org/tld. The list of approved makes and models of vehicles is not exclusive and may be amended upon written request to the Manager of Enforcement.

§ 1017.44. Reconstructed vehicles prohibited.

 Salvaged or reconstructed vehicles may not provide taxicab service.

Subchapter E. IMPOUNDMENT OF VEHICLES AND EQUIPMENT

Sec.

1017.51.	General.
1017.52.	Impoundment of vehicles and equipment.

§ 1017.51. General.

 The following words and terms, when used in this subchapter, have the following meanings, unless the context clearly indicates otherwise:

 Registered lienholder—A person having a vehicle lien interest that is registered with the Department of Transportation or the similarly authorized registering agency of the jurisdiction identified on the license plate of the vehicle, if any, on the date the vehicle was impounded.

 Registered owner—The owner of the vehicle as registered with the Department of Transportation, or the similarly authorized registering agency of the jurisdiction identified on the license plate of the vehicle, if any, on the date the vehicle was impounded.

 Vehicle—The term includes the vehicle and equipment used or capable of being used to provide taxicab service.

§ 1017.52. Impoundment of vehicles and equipment.

 (a) Impoundments generally. The Authority may impound vehicles, medallions and equipment used to provide call or demand service as provided in section 5714(g) of the act (relating to certificate and medallion required).

 (b) Enforcement proceedings. The Enforcement Department or trial counsel will initiate an enforcement proceeding as provided in § 1005.11 (relating to formal complaints generally) against the regulated party or owner of the impounded property, if other than a regulated party, related to an impoundment made under this section and the act.

 (c) Notice of impoundment. The Authority will issue a notice of impoundment to the registered owner of the vehicle and registered lienholder of the vehicle or medallion, or both, if any, as provided in section 5714(g)(2)(ii) of the act.

 (d) Recovery of impounded property. Except as provided in subsection (g), the owner or lienholder of the property impounded as provided in this section may recover the impounded property by paying all penalties, fines and costs required under section 5714(g)(1) of the act.

 (e) Public auction. Confiscated property may be sold at public auction as provided in section 5714(g)(2)(i) of the act.

 (f) Return of funds. If the enforcement proceeding initiated as provided in subsection (b) results in a determination that the respondent was not liable for the violations referenced in the complaint and that the grounds for the impoundment were unsubstantiated, the costs of towing and impoundment paid by the respondent as provided in subsection (d) will be refunded.

 (g) Stay of auction. Upon motion of the respondent or a registered owner or a registered lienholder as an intervening party as permitted under § 1005.31 (relating to initiation of intervention), the presiding officer may enter an order staying the public auction of the impounded property for a period as the presiding officer deems just. Costs of impoundment will continue to accrue during the period of any stay imposed through this subsection.

 (h) Emergency hold on impounded property.

 (1) To advance the interests of the act or to protect the public good, the Enforcement Department or trial counsel may motion the presiding officer to stay the return of property impounded as provided in this section through the conclusion of the enforcement proceeding, although requirements for recovery as provided in subsection (d) have been met.

 (2) The presiding officer will issue a decision in support of the determination required under this section.

 (3) The decision of the presiding officer issued as provided in paragraph (2) will constitute a recommended decision and will be reviewed by the Authority as provided in §§ 1005.211—1005.215 (relating to exceptions to recommended decisions).

 (4) If the release of impounded property is stayed, the enforcement proceedings will be conducted on an expedited basis.

Subchapter F. TAXICAB LEASES

Sec.

1017.61.	Control of vehicle.
1017.62.	Taxicab leases.
1017.63.	Receipts.

§ 1017.61. Control of vehicle.

 Each certificate holder shall supervise the use of its taxicabs to assure that each taxicab is operated in compliance with the act, this part or an order of the Authority.

§ 1017.62. Taxicab leases.

 (a) Lessees.

 (1) A taxicab may be leased to a taxicab driver.

 (2) A taxicab may not be subject to a sublease agreement.

 (b) Basic components of a lease. A taxicab lease must be in writing and contain information required by the Authority, including the following:

 (1) The name, address and telephone contact information for each party.

 (2) The certificate number or medallion number, or both, subject to the lease.

 (3) The term of the lease.

 (4) The monetary consideration for the lease, in United States dollars.

 (5) Other consideration to be paid by a taxicab driver if different from that in paragraph (4).

 (6) Specification of any service limitation of the taxicab in a city of the first class, including those related to partial-rights taxicabs.

 (7) Written confirmation that a lease may be ended by either party only upon 10 days notice, or a period equal to the lease term if less than 10 days. This paragraph does not limit the rights of a party to terminate the lease for breach.

 (8) The original dated and witnessed signature of the certificate holder and the taxicab driver.

 (9) The driver's certificate number and the expiration date then appearing on the driver's certificate.

 (c) Copies of lease. A copy of a taxicab lease agreement shall be provided to the taxicab driver and a second copy must be in the taxicab for review by the Authority, the PUC or law enforcement upon demand.

 (d) Retention of lease. The certificate holder shall retain copies of each taxicab lease as provided in § 1011.11 (relating to record retention).

§ 1017.63. Receipts.

 

 (a) A taxicab certificate holder shall provide to each of its taxicab drivers a receipt book to note any payment received for taxicab service in the event the meter does not provide a receipt as provided in § 1017.24 (relating to meter activation and display). Each receipt must provide information substantially similar to that required under § 1017.24 and identify the taxicab certificate holder's name and contact information, including address and telephone number.

 

 (b) The Authority may design and require the use of standardized receipts.

CHAPTER 1019. DISPATCHERS

Sec.

1019.1.	Purpose and prohibition.
1019.2.	Ineligible persons for dispatcher service.
1019.3.	Dispatcher application.
1019.4.	Application changes.
1019.5.	Facility inspection.
1019.6.	Review of dispatcher application.
1019.7.	Name, colors and markings review.
1019.8.	Dispatcher requirements.
1019.9.	List of affiliated taxicabs.
1019.10.	Dispatcher rates.
1019.11.	Disclosure of conflicts.
1019.12.	Bond required.
1019.13.	Minimum number of medallion taxicab affiliations.
1019.14.	Dispatcher records.

§ 1019.1. Purpose and prohibition.

 (a) This chapter establishes and prescribes Authority regulations and procedures for the certification and operation of dispatching services in Philadelphia under sections 5711(c)(6) and 5721 of the act (relating to power of authority to issue certificates of public convenience; and centralized dispatcher).

 (b) A person may not provide dispatching services in Philadelphia without a certificate issued by the Authority as provided in this chapter.

§ 1019.2. Ineligible persons for dispatcher service.

 An applicant is ineligible to be a dispatcher under the following circumstances:

 (1) If the applicant, a person with a controlling interest in the applicant or a key employee is ineligible to own Authority issued rights as provided in § 1011.5 (relating to ineligibility due to conviction or arrest).

 (2) The applicant is incapable of providing dispatching services through persons or communication devices that speak, read and write the English language.

 (3) The applicant, a person with a controlling interest in the applicant or a key employee knowingly makes a false statement on a dispatcher application.

 (4) The applicant, a person with a controlling interest in the applicant or a key employee is in violation of § 1011.7 (relating to payment of outstanding fines, fees and penalties).

 (5) The applicant or any person having a controlling interest over the applicant is 20 years of age or younger.

§ 1019.3. Dispatcher application.

 (a) General. To obtain a dispatcher's certificate a person shall complete and file a Form No. SA-1 ''Application'' with the Manager of Administration along with the application fee as provided in §§ 1001.42 and 1001.43 (relating to mode of payment to the Authority; and Authority fee schedule). The SA-1 may be obtained on the Authority's web site at www.philapark.org/tld.

 (b) SA-1 application. The completed SA-1 shall be verified as provided in § 1001.36 (relating to verification and affidavit) and be filed with the Director in person by the owner of the applicant and include all of the information required by the Authority, including the following:

 (1) The name of the applicant and contact information, including a mailing address, a Philadelphia business address, a telephone number, an email address and a facsimile number.

 (2) An identification of the applicant as an individual or a person as provided in § 1001.10 (relating to definitions).

 (3) If the applicant is not an individual, the following must be included:

 (i) The articles of incorporation, operating agreement, formation documents or other applicable organizing documents for the applicant.

 (ii) A certificate of good standing for the applicant from the Corporation Bureau.

 (iii) A copy of the Department of State's entity page for the applicant.

 (iv) The trade name, if any, of the applicant and a copy of the trade name registration certificate, if applicable.

 (4) The mailing address and physical address of the applicant, if different.

 (5) A list of all Authority or PUC certificates or other rights in which the applicant or any person with a controlling influence in the applicant has any controlling interest, including taxicab medallions.

 (6) The name, address, telephone number, facsimile number and email address of any attorney or broker, or both, assisting the applicant through the Authority's dispatcher certification process.

 (7) A certified criminal history report issued within 30 days of the filing of the application from any jurisdiction in which the following individuals have lived during the last 5 years through the date of application:

 (i) An individual applicant.

 (ii) Any person with a controlling interest in the applicant.

 (iii) Each key employee.

 (8) A written statement verified as provided in § 1001.36, which provides that:

 (i) The applicant, each person with a controlling interest in the applicant and each key employee have not been subject to a conviction as provided in § 1001.10.

 (ii) The applicant, each person with a controlling interest in the applicant and each key employee are in compliance with § 1011.7 (relating to payment of outstanding fines, fees and penalties).

 (iii) The applicant, each person with a controlling interest in the applicant and each key employee are current on all reports due in relation to other rights issued by the Authority.

 (iv) The applicant can comply with the requirements in § 1019.8 (relating to dispatcher requirements).

 (9) A copy of the applicant's business plan.

 (10) A completed original of Form No. DSP-3 ''Business Experience Questionnaire.'' A copy of the DSP-3 may be obtained on the Authority's web site at www.philapark.org/tld.

 (11) The Federal Tax Identification number of the applicant.

 

 (c) DSP-2 application. At the time an SA-1 is filed, an applicant for a dispatcher's certificate shall also file a DSP-2 ''Dispatcher Colors and Markings Change/Application'' as provided in § 1019.7 (relating to name, colors and markings review).

§ 1019.4. Application changes.

 An applicant for a dispatcher certificate shall immediately notify the Authority in writing of any changes that affect the accuracy of the information in the application while the application is under review by the Authority.

§ 1019.5. Facility inspection.

 

 (a) An applicant for a dispatcher's certificate shall make its proposed operating locations available for inspection by the Enforcement Department as part of the application process and throughout the term of its status as a dispatcher. A facility inspection may be conducted without prior notice.

 

 (b) Dispatchers shall provide all dispatching services from facilities located in Philadelphia or from a location in this Commonwealth within 10 miles of Philadelphia.

§ 1019.6. Review of dispatcher application.

 (a) An application for a dispatcher's certificate will be denied by the Authority if the dispatcher is unable to meet the requirements in this chapter, including § 1019.8 (relating to dispatcher requirements).

 (b) An application for a dispatcher's certificate will be granted if the applicant complies with the requirements in this subchapter and the Authority finds that the applicant is capable of providing dependable service according to the act, this part and orders of the Authority.

§ 1019.7. Name, colors and markings review.

 (a) To change or establish any name, colors or markings, a dispatcher shall file a DSP-2 ''Dispatcher Colors and Markings Change/Application'' along with the application fee as provided in §§ 1001.42 and 1001.43 (relating to mode of payment to the Authority; and Authority fee schedule). The DSP-2 may be obtained on the Authority's web site at www.philapark.org/tld.

 (b) The Authority will not approve a DSP-2 application if it determines that the requested name or colors and markings are similar to those of an existing dispatcher.

 (c) Upon approval of a DSP-2 application, the dispatcher shall have the exclusive right to use the approved name, colors and markings, provided the certificate has not expired or been cancelled.

 (d) Each dispatcher shall use only a single name, colors and marking scheme for all the medallion taxicabs it dispatches.

 (e) Each dispatcher shall use a distinctive name, colors and marking scheme for partial-rights taxicabs it dispatches as provided in § 1017.11(b) (relating to distinctive colors and markings).

 (f) A dispatcher may not change an approved name, colors and markings scheme without advance approval of the Authority as provided in this section.

 (g) The colors and markings of a dispatcher must be consistent with the requirements in Chapter 1017 (relating to vehicle and equipment requirements).

§ 1019.8. Dispatcher requirements.

 A dispatcher shall continually maintain standards and equipment capable of providing prompt and adequate service to the public, including the following:

 (1) Control a radio frequency signal of sufficient strength to transmit and receive real time verbal communication and data throughout Philadelphia.

 (2) Respond to customer calls 24 hours a day.

 (3) Have taxicabs available for dispatch 24 hours a day, 7 days a week.

 (4) Dispatch taxicabs with current Authority rights to provide the service requested.

 (5) Obtain the Authority's confirmation, which may be provided by the Authority through email, of a taxicab's good standing before commencing to provide it with dispatching service.

 (6) Have at least one display advertisement in a telephone book with citywide circulation in Philadelphia or a web site which displays all of the information necessary to order a taxicab through the dispatcher.

 (7) Have a minimum of four coordinated telephone lines to receive incoming calls for service from the public.

 (8) Operate and maintain a taxicab meter system approved by the Authority as provided in § 1017.23 (relating to approved meters), including computer hardware and software, means of communication between the dispatcher and each taxicab meter and the Authority.

 (9) Answer customer questions about rates and services provided within 12 hours.

 (10) Answer customer questions or complaints about service in writing and within 5 days of receipt of the complaint.

 (11) Maintain records as provided in § 1019.14 (relating to dispatcher records).

 (12) A dispatcher may not discriminate against nor allow its affiliated drivers to discriminate against any member of the public and may not refuse service to any section of Philadelphia. Partial-rights taxicabs may only be dispatched to provide service consistent with the certificate holder's rights.

 (13) A dispatcher shall be able to receive and respond to emergency or distress alerts received from taxicab drivers 24 hours a day, 7 days a week.

 (14) In addition to the requirements in the act, this part or an order of the Authority, a dispatcher may institute rules of conduct for drivers and certificate holders associated with the dispatcher.

 (15) A dispatcher shall report violations of the act, this part or an order of the Authority committed by a driver or certificate holder associated with the dispatcher to the Authority immediately.

§ 1019.9. List of affiliated taxicabs.

 A dispatcher shall file a complete Form No. DSP-4 ''Dispatcher Affiliated Taxicabs'' with the Authority on the first business day of each month noting the taxicab numbers and certificate holders associated with the dispatcher at that time. A Form No. DSP-4 may be obtained at www.philapark.org/tld. If a taxicab is added or removed from a dispatcher's customer list, the dispatcher shall report the change within 24 hours to the Authority by email.

§ 1019.10. Dispatcher rates.

 (a) A dispatcher may not provide service to taxicabs unless it has filed a Form No. DSP-5 ''Dispatcher Rates'' with the Authority establishing the rates schedule charged for the dispatcher's services. Only the rates identified in the DSP-5 filing may be charged by the dispatcher, or any agent or employee of a dispatcher. The DSP-5 may be obtained at www.philapark.org/tld.

 (b) A dispatcher may amend its DSP-5 filing at any time, with an effective date 30 days from the date of filing.

 (c) A dispatcher shall provide a copy of its DSP-5 to each of its associated drivers and certificate holders.

 (d) Under section 5721 of the act (relating to centralized dispatcher), the Authority may deny the filing of a DSP-5 if it determines that the suggested rates are unreasonable.

§ 1019.11. Disclosure of conflicts.

 (a) A dispatcher shall disclose, through the filing of the DSP-4, any dispatching services that may be provided to taxicabs owned or operated by the dispatcher, a person with a controlling interest in the dispatcher, key employee or immediate family members of the dispatcher.

 (b) For the purposes of this section, ''immediate family members'' means the spouse or domestic partner, parent, grandparent, great-grandparent, great-great grandparent, children, siblings (including ''half'' and step-siblings), uncles/aunts, grand uncles/aunts, grandchildren, nephews/nieces, first cousins, great-grandchildren and grand nephews/nieces of the dispatcher.

§ 1019.12. Bond required.

 (a) Within 30 days of receipt of the Authority's email notification of its intention to grant an applicant's SA-1 application, the applicant shall file a bond or irrevocable letter of credit consistent with this section with the Authority.

 (b) A dispatcher may not provide dispatching services unless the bond or irrevocable letter of credit required by this section has been filed and accepted by the Authority and the requirements in § 1003.51(f) (relating to applications generally) have been satisfied.

 (c) A dispatcher's bond or irrevocable letter of credit shall be issued in an amount of at least $10,000 and upon terms and in a form as will insure the dispatcher's adherence to the law, the Authority's regulations and orders and the interests of the dispatcher's clients, including payment of all fines, fees and penalties incurred by the dispatcher.

§ 1019.13. Minimum number of medallion taxicab affiliations.

 (a) A dispatcher shall remain affiliated with at least 20 active medallion taxicabs for dispatching services with each taxicab displaying the name, colors and markings of the dispatcher approved as provided in this subchapter.

 (b) If a dispatcher fails to maintain the minimum number of affiliated taxicabs the Enforcement Department or trial counsel will provide 30 days notice of its intention to initiate an enforcement proceeding through a formal complaint as provided in § 1005.11 (relating to formal complaints generally) to cancel the dispatching certificate.

 (c) Upon notice of planned enforcement proceedings as provided in subsection (b), the dispatcher will be permitted to initiate a certificate transfer as provided in Chapter 1027 (relating to sale of rights) or come into compliance with subsection (a).

 (d) If a dispatcher and proposed buyer of the certificate initiate a certificate transfer within 30 days of the notice provided under subsection (b), the enforcement proceedings may be stayed unless the Enforcement Department or trial counsel determine that a transfer of the certificate is not likely to occur within 6 months of the date the transfer application was filed.

 (e) If a dispatcher comes into compliance with subsection (a) within 30 days of the notice provided under subsection (b), the dispatcher shall provide notice of that status to the Enforcement Department or trial counsel, and if proven the matter will be closed.

§ 1019.14. Dispatcher records.

 A dispatcher shall maintain records related to its affiliated certificate holders, its customers, the calls or scheduling for service it receives and the dispatches it makes as provided in § 1011.11 (relating to record retention).

CHAPTER 1021. TAXICAB DRIVERS

Sec.

1021.1.	Purpose and scope.
1021.2.	Certification required.
1021.3.	Designation of taxicab driver's certificates.
1021.4.	Ineligible persons for taxicab driver certificate.
1021.5.	Standards for obtaining a taxicab driver's certificate.
1021.6.	Application changes.
1021.7.	Taxicab driver training scheduled.
1021.8.	Certain training subjects.
1021.9.	Taxicab driver test.
1021.10.	Expiration and renewal of certificate.
1021.11.	Driver requirements.
1021.12.	Additional requirements.
1021.13.	Taxicab driver's certificate upon cancellation.
1021.14.	General taxicab driver reports.
1021.15.	Taxicab driver reports after accident.
1021.16.	Service issues regarding people with disabilities.
1021.17.	Partial-rights taxicab driver log.

§ 1021.1. Purpose and scope.

 (a) This chapter establishes minimum qualifications for taxicab drivers.

 (b) A certificate holder may impose more stringent standards in the selection of its taxicab drivers.

§ 1021.2. Certification required.

 (a) Only a taxicab driver may provide taxicab service.

 (b) A taxicab driver shall carry and display an original taxicab driver's certificate on the protective shield of the taxicab on the driver's side with the front of the certificate (picture) facing the rear seat at all times.

 (c) A taxicab driver may not drive a taxicab with a mutilated, damaged or illegible taxicab driver's certificate.

 (d) Only one taxicab driver's certificate at a time may be displayed in a taxicab.

 (e) A taxicab driver's certificate is not transferable.

§ 1021.3. Designation of taxicab driver's certificates.

 (a) Driver designation.

 (1) Beginning on December 3, 2011, driver certification rights previously issued by the Authority under section 5706 of the act (relating to driver certification program) shall be designated by the driver as either a taxicab driver's certificate or limousine driver's certificate at the time those rights are scheduled for renewal as provided in § 1011.3 (relating to annual rights renewal process).

 (2) Provided that all other terms of renewal are met, the TLD will renew the driver's certificate only for the rights selected by the renewing driver as provided in paragraph (1).

 (3) New driver's certificates will identify each driver as either a taxicab driver or a limousine driver.

 (b) Dual driver authority.

 (1) This section does not prohibit a taxicab driver from obtaining a limousine driver certificate as provided in Subpart C (relating to limousines).

 (2) This section does not prohibit a limousine driver from obtaining a taxicab driver certificate as provided in this chapter.

§ 1021.4. Ineligible persons for taxicab driver certificate.

 In addition to other prohibitions provided in this part, an applicant for a taxicab driver's certificate shall be automatically ineligible under the following circumstances:

 (1) The applicant does not hold a current driver's license.

 (2) The applicant does not speak the English language sufficiently to communicate with the general public, to understand highway traffic signs and signals in the English language, to respond to official inquiries and to make verifiable entries on reports and records.

 (3) The applicant has failed to satisfactorily complete taxicab driver training and testing as prescribed by this chapter.

 (4) The applicant is unable to provide information required by this subpart.

 (5) The applicant is 20 years of age or younger.

 (6) Unless otherwise permitted by the Authority, the applicant does not have a driving history in the United States of at least 1 continuous year prior to the date of application.

§ 1021.5. Standards for obtaining a taxicab driver's certificate.

 

 (a) General. To obtain a taxicab driver's certificate an individual shall complete and file with the Director a Form DR-1 ''Driver Application,'' along with the application fee as provided in §§ 1001.42 and 1001.43 (relating to mode of payment to the Authority; and Authority fee schedule). The DR-1 may be obtained on the Authority's web site at www.philapark.org/tld and be completed in person before TLD staff.

 

 (b) DR-1 application. The completed DR-1 must be verified as provided in § 1001.36 (relating to verification and affidavit) and include the information required by the Authority, including the following:

 (1) The full and legal name of the individual applicant.

 (2) The applicant's residential address and telephone number. Applicants may submit an email address to become eligible for service of notice as provided in § 1001.51 (relating to service by the Authority).

 (3) The applicant's driver's license.

 (4) The applicant's Social Security card or documents confirming a legal permanent resident status or an alien authorized to work status, if applicable.

 (5) Authorization for release of the applicant's criminal history report from the State Police to the Authority.

 (6) A certified copy of the applicant's criminal history report for each jurisdiction other than the Commonwealth in which the applicant resided during the 5 years immediately preceding the filing of the application. Each criminal history report shall be certified within 30 days of the filing of the application. In the event an applicant has been present in the United States for less than 5 years, the applicant shall meet the requirements in this subsection by consenting to the release to the Authority of any similar criminal history report maintained by another country, International Criminal Police Organization and the government of United States of America for the 5-year period immediately preceding the filing of the application.

 (7) Authorization for the release of the applicant's driver history report from the Department of Transportation to the Authority.

 (8) A certified copy of the driver history report from each jurisdiction, other than the Commonwealth, in which the applicant was licensed during the 5 years immediately preceding the filing of the application. Each driver history report shall be certified within 30 days of the filing of the application. In the event an applicant has been present in the United States for less than 5 years, the applicant shall meet the requirements in this subsection by consenting to the release to the Authority of any similar driver history report maintained by another country for the 5-year period immediately preceding the filing of the application.

 (9) Submit a Form DR-2 ''Driver Medical History,'' which is available on the Authority's web site at www.philapark.org/tld. The requirement to complete the DR-2 will be waived for applicants who possess a current physical exam card issued under the requirements of a commercial driver's license in Pennsylvania. See 49 CFR 391.41—391.49 (relating to physical qualifications and examinations).

 (10) A list of all Authority or PUC certificates in which the applicant has any controlling interest, including taxicab medallions.

 (11) A written statement verified as provided in § 1001.36, which provides that:

 (i) The applicant has not been subject to a conviction as provided in § 1001.10 (relating to definitions).

 (ii) The applicant is in compliance with § 1011.7 (relating to payment of outstanding fines, fees and penalties).

 (iii) The applicant can comply with the requirements in this chapter.

§ 1021.6. Application changes.

 (a) An applicant for a taxicab driver's certificate shall immediately notify the Authority in writing of any changes that affect the accuracy of the information in the application while the application is under review by the Authority.

 (b) False information provided by an applicant for a taxicab driver's certificate will result in the denial of the application or cancellation of the driver's certificate if issued prior to discovery of the false information.

§ 1021.7. Taxicab driver training scheduled.

 (a) Upon submission of a DR-1 application as provided in this chapter, the applicant will be scheduled by the Authority to attend an in-class training program.

 (b) An applicant will not be scheduled for training as provided in subsection (a) if the application documents present information that clearly renders the applicant ineligible to be a taxicab driver. For example, an applicant who does not possess a valid driver's license will not be scheduled for training.

 (c) The Authority, or its authorized agent, will conduct the training.

§ 1021.8. Certain training subjects.

 (a) Continued training subjects. The Authority will continually monitor issues related to taxicab drivers, including safety and customer service, and maintain a current list of taxicab driver training subjects on its web site at www.philapark.org/tld.

 (b) Basic training issues. Taxicab driver training will consist of a minimum of 18 hours of in-class instruction and will be developed to address all areas of the act, this part and orders of the Authority. The dress code applicable to taxicab drivers applies to applicants during training. Training will address issues provided for in subsection (a), including the following subjects:

 (1) Authority regulations governing taxicab drivers, including differences between the services medallion taxicabs and partial-rights taxicabs provide.

 (2) Authority regulations governing taxicab certificate holders.

 (3) Authority regulations governing equipment.

 (4) Penalties for violation of Authority regulations.

 (5) An overview of the administrative process related to violations.

 (6) The identification and address of the Authority offices responsible for administering the act.

 (7) Customer service issues, including the following:

 (i) Personal appearance of drivers.

 (ii) Driver courtesy and hygiene.

 (iii) Assistance to elderly and people with disabilities.

 (8) Driving and customer safety issues, including the following:

 (i) Defensive driving techniques.

 (ii) Emergency aid.

 (iii) Vehicle and equipment inspections.

 (iv) Crime prevention.

 (v) Accident reporting procedures.

 (9) Issues related to the geography of Philadelphia, including the following:

 (i) Map reading.

 (ii) Overview of major street and traffic patterns.

 (iii) Identification and location of popular landmarks and locations.

 (c) Testing. The applicant will be tested under § 1021.9 (relating to taxicab driver test) on the final day of training.

§ 1021.9. Taxicab driver test.

 (a) The Authority will develop a test to assure that applicants for taxicab driver's certificates understand the information presented during training as provided in § 1021.8 (relating to certain training subjects).

 (b) The test will be administered in the English language. The assistance of interpreters will not be permitted. An applicant's responses to all test questions shall be in the English language.

 (c) Except as limited by this chapter, the test may be administered in a manner and in a form deemed appropriate by the Authority. The test may include:

 (1) Questions requiring a written response.

 (2) Multiple choice questions.

 (3) Oral questions.

 (4) The demonstration of an ability to operate a motor vehicle and use taxicab related equipment.

 (d) Failure to pass the test required by this section after three attempts will render the application void.

 (e) Failure to pass the test required by this section within 90 days of filing the DR-1 application as provided in § 1021.5 (relating to standards for obtaining a taxicab driver's certificate) will render the application void.

 (f) Upon the denial or voiding of a DR-1 as provided in this chapter an applicant may not reapply for a driver's certificate for 6 months.

§ 1021.10. Expiration and renewal of certificate.

 An individual with a taxicab driver's certificate that has been expired for more than 1 year shall attend taxicab driver training and pass the taxicab driver test provided in this chapter before providing service.

§ 1021.11. Driver requirements.

 

 (a) Preservice inspection. Prior to driving a taxicab before each shift, a taxicab driver shall perform a vehicle inspection to confirm that the taxicab complies with this subpart. The inspection must include the following:

 (1) At least one full walk around the taxicab to assure the exterior of the vehicle is in compliance with this subpart, including the following:

 (i) The exterior of the taxicab is not damaged, no sharp edges are present and no parts of the vehicle have been removed. For example, the hood and doors of the taxicab are present and in the proper location.

 (ii) The appropriate name, colors and markings scheme are affixed to the taxicab.

 (iii) The taxicab's tires are full size and the treads are not worn below the level permitted under § 1017.5(b)(9) (relating to basic vehicle standards).

 (2) The opening and closing of all doors, the hood and the trunk to assure proper functionality and the absence of any sharp edges that may injure a passenger or damage clothing, luggage or other property.

 (3) An inspection of the interior of the taxicab to make certain that the vehicle is clean and otherwise in compliance with this subpart.

 (4) Operation of the heater and air conditioner to confirm the taxicab's ability to maintain the air temperature required under § 1017.5(b)(19).

 (5) An inspection of the taxicab meter to assure it has been approved for use by the Authority, is sealed as provided in § 1017.21(b)(3) (relating to taxicab meters) and is in proper working order at all times. Unsealed or improperly sealed meters and malfunctioning meters shall be reported to the Enforcement Department immediately.

 

 (b) Presentation and appearance. A taxicab driver is responsible for providing clean, safe and courteous taxicab service, including the following:

 (1) Presenting a neat and clean appearance while providing taxicab service.

 (2) Dressing in clean clothing which will be composed of a shirt with collar, ankle-length trousers, slacks/dress, skirts (if gender appropriate), socks or stockings, and shoes or clean sneakers. For example, shorts, bathing trunks or bathing suits, undershirts, ''muscle shirts'' or tank-tops are prohibited unless concealed as undergarments beneath the attire described in this paragraph.

 (3) Wearing open toed shoes, sandals or bare feet are prohibited while operating a taxicab.

 (4) Ceasing operation of a vehicle known by the driver to be in an unsafe condition.

 (5) Being courteous toward passengers, the public, law enforcement officials and representatives of the Authority. A driver may not use obscene, vulgar or offensive language while providing taxicab service.

 (6) Maintaining the volume of a radio at a low level and upon the request of a passenger, lowering the volume or switching off any music or electronic noise such as a radio, except that the communications radio required under § 1017.5(b)(3) must remain on and at a reasonable volume at all times.

 (7) Ceasing use of a mobile telephone and remove ear phones or Bluetooth devices from ears when a passenger is in the vehicle.

 (8) Making certain that the taxicab complies with the temperature requirements in § 1017.5(b)(19).

 (9) Assisting the elderly or persons with disabilities in entering and exiting the taxicab.

 (10) Maintaining cash capable of providing change for a $20 bill.

 (11) Immediately reporting any possessions of passengers left behind in a taxicab after service to the Manager of Enforcement and the taxicab's dispatcher and then deliver the possessions to TLD Headquarters.

 

 (c) Permitted fares. A taxicab driver may not charge fares other than those approved by the Authority as provided in section 5703 or 5720 of the act, or both (relating to rates; and wages).

 (d) Gratuities or payment method.

 (1) A taxicab driver may not request the payment of a gratuity by a passenger.

 (2) A taxicab driver may not insist upon or express a preference for fare payment method. For example, a taxicab driver may not demand payment in cash as opposed to credit card, nor may a taxicab driver suggest that the passenger be driven to a bank or automatic teller machine to secure cash to pay the fare as opposed to use of a credit card or other cashless payment option.

 (3) A taxicab driver may not ask a potential customer for fare payment method information in advance of providing taxicab service.

 (4) A taxicab driver shall accept payment by credit card and debit card and other cashless payment options identified by the Authority.

 (e) Lease or employment documents. A taxicab driver is responsible for maintaining a copy of the lease agreement, employment contract and employee identification card in the taxicab at all times.

 (f) Direct route. Unless directed otherwise by a fare-paying customer, a taxicab driver shall select and use the most direct route consistent with prevailing road and traffic conditions from the point of pick-up to the passenger's point of destination.

 (g) Rules of the road. A taxicab driver shall continually provide taxicab service in a manner consistent with 75 Pa.C.S. (relating to Vehicle Code) and the Philadelphia Traffic Code (12 Phila. Code §§ 100—3012).

 (h) Driver history report. A driver history report that evidences a violation or series of violations which relate to dangerous driving activities may form the basis for a denial of a taxicab driver's certificate application, a denial of the annual renewal as provided by § 1011.3 (relating to annual rights renewal process) or a formal complaint to suspend or cancel the taxicab driver's certificate.

 (i) Meter operation. The meter must be in operation during the entire time the taxicab is engaged by a passenger, and the passenger shall be required to pay only the amount recorded by the meter, except that, when back-mileage or surcharge provisions of the tariff of the certificate holder apply, the back-mileage charge or surcharge shall be added to the amount recorded by the meter. Each meter charge shall be collected only once regardless of whether the taxicab is being used in exclusive service or in nonexclusive service.

§ 1021.12. Additional requirements.

 (a) Each taxicab driver shall know the rights and limitations of any taxicab used to provide taxicab service, including the geographical limitation of partial-rights taxicabs, if applicable.

 (b) A taxicab driver may not provide taxicab service beyond the 14th consecutive hour after coming on duty. Time spent on any break from taxicab service does not extend the 14-hour period. A taxicab driver may operate for another 14-hour period only after 8 consecutive hours off duty.

 (c) A taxicab driver may not provide taxicab service with an expired taxicab driver's certificate.

 (d) A taxicab driver may not provide taxicab service without a valid driver's license.

 (e) Whenever a taxicab is occupied by a fare-paying passenger or by members of a party of fare-paying passengers who have engaged the taxicab on an exclusive basis, the taxicab driver may not permit another person to occupy or ride in the taxicab.

 (f) No requirement of this subpart, or any Authority regulation, may be interpreted to disrupt or interfere with interstate commerce exclusively regulated by or preempted by the government of the United States.

§ 1021.13. Taxicab driver's certificate upon cancellation.

 (a) A cancelled taxicab driver's certificate may not be reinstated.

 (b) An individual subject to cancellation of a taxicab driver's certificate may not apply to the Authority for a new driver's certificate, including a limousine driver's certificate as provided in § 1057.13 (relating to limousine driver's certificate upon cancellation), for 2 years from the date the cancellation was entered. If the individual subject to cancellation also holds a limousine driver's certificate, that driver's certificate will be cancelled with the taxicab driver's certificate.

 (c) The circumstances related to the cancellation of a taxicab driver's certificate will be considered by the Authority when reviewing any subsequent application submitted by that individual.

§ 1021.14. General taxicab driver reports.

 A taxicab driver shall make timely written reports to the Authority as required by the act, this part or an order of the Authority, including the following reports which shall be made to the Manager of Administration:

 (1) Invalidation of a driver's license for any reason must be reported with 48 hours.

 (2) A change of address shall be reported within 15 days.

 (3) A change of name shall be reported to the Authority within 15 days of occurrence or if a court proceeding is required, within 15 days of the court filing.

§ 1021.15. Taxicab driver reports after accident.

 A taxicab driver who is involved in an accident while driving a taxicab that results in property damage, personal injury or death shall do the following:

 (1) Stop immediately.

 (2) Provide driver's license, registration, insurance, and other information required by law of the Commonwealth, and the name of the taxicab's certificate holder.

 (3) Report the details of the accident as soon as practicable as follows to:

 (i) The police if required under 75 Pa.C.S. § 3746 (relating immediate notice of accident to police department).

 (ii) The certificate holder.

 (iii) The Manager of Enforcement if required under § 1017.37 (relating to inspection subsequent to vehicular accident or damage).

§ 1021.16. Service issues regarding people with disabilities.

 (a) If on-duty and not already transporting a passenger, a taxicab driver shall stop the taxicab when hailed by a person with a disability. The driver shall determine if the services requested by the person can be reasonably accommodated by the vehicle and adhere to the following procedure:

 (1) If the service request can be reasonably accommodated, the driver shall provide the service.

 (2) If the service request cannot be reasonably accommodated, the driver shall call a dispatcher immediately to arrange for service by the closest taxicab available that can accommodate the person's request.

 

 (b) This section may not be interpreted to require or permit a taxicab to provide service in an area outside the rights identified in the taxicab certificate holder's rights. For example, this section does not permit a partial-rights taxicab to stop for a hale outside of its defined geographical area.

§ 1021.17. Partial-rights taxicab driver log.

 (a) A taxicab driver providing service in a partial-rights taxicab shall maintain a service log identifying all taxicab service provided during each shift.

 (b) The partial-rights taxicab service log must identify the following information:

 (1) The date of service.

 (2) The taxicab driver's name and driver's certificate number.

 (3) The taxicab number, the certificate holder and the dispatcher.

 (4) The times and places of origin and destination of each trip including the odometer or meter mileage at the origin and destination of each passenger trip. Origin and destination places shall contain a street name and address or, if unavailable, an identifiable landmark.

 (5) A designation indicating whether a trip resulted from a hail or through the dispatcher.

 (6) The fare paid for the trip.

 (7) The amount of any gratuity paid to the taxicab driver.

 (8) The number of passengers on each trip, indicating separately each fare collected from each passenger or party of passengers sharing the ride.

 (9) Each trip on which packages were delivered and the charge for the trip.

 (10) The signature of the driver attesting to the accuracy of the data recorded.

 

 (c) A partial-rights taxicab driver shall completely enter the information required by the log immediately upon the conclusion of each taxicab service trip.

 (d) The taxicab log required under this section shall be maintained in the taxicab until the driver's shift has ended and be presented to an inspector at any time upon demand.

 (e) Upon the conclusion of a partial-rights taxicab driver's shift, the taxicab log shall be delivered to the certificate holder and maintained by the certificate holder as provided in § 1011.11 (relating to record retention).

 (f) The Authority may require the use of a specific taxicab service log form and will make the required form available on its web site at www.philapark.org/tld.

CHAPTER 1025. INSURANCE REQUIRED

Sec.

1025.1.	Definitions.
1025.2.	Insurance forms and procedures.
1025.3.	Insurance required.
1025.4.	Applications to self-insure.
1025.5.	Standards for adjustment and payment of claims.
1025.6.	Additional requirements.

§ 1025.1. Definitions.

 The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise:

 Form E—The standard form filed by a regulated party's insurer evidencing the existence of a current and valid insurance policy or surety bond in the name of the insured and for lines of coverage and with limits required by the Authority.

 Form K—The standard form filed by a regulated party's insurer providing notice of cancellation of an insurance policy or surety bond previously maintained to be in compliance with the act, this part or an order of the Authority.

 Self-insurer—A certificate holder that adjusts and is ultimately liable for payment of all or part of its bodily injury, property or cargo damage claims resulting from the operation, maintenance or use of a motor vehicle as a taxicab.

§ 1025.2. Insurance forms and procedures.

 (a) Forms of notice.

 (1) Endorsements for policies of insurance and surety bonds, certificates of insurance or for approval of other securities or agreements shall be made through Form E.

 (2) Notices of cancellation for policies of insurance, surety bonds, certificates of insurance and self-insurer status shall be made through Form K.

 (3) Each provider of insurance and surety bonds shall complete and file the Authority's Form INS-1 ''Contact Information'' upon the first filing of a Form E in each calendar year and at any time during the year when the contact information provided will change. A copy of the Form INS-1 is available on the Authority's web site at www.philapark.org/tld.

 (b) Surety bonds and certificates in effect continuously. Surety bonds and certificates of insurance must specify that coverage will remain in effect continuously until terminated, except under one of the following conditions:

 (1) When filed expressly to fill prior gaps or lapses in coverage or to cover grants of emergency temporary authority of unusually short duration and the filing clearly so indicates.

 (2) Urgent circumstances, when special permission is obtained from the Authority.

 (c) Filing and copies.

 (1) Certificates of insurance, surety bonds and notices of cancellation required by subsection (a) must be filed with the Director by email at eksubmission@philapark.org.

 (2) The Authority will provide prompt notice of acceptance of filings required by this section by return email message.

 (d) Name of insured. Certificates of insurance and surety bonds shall be issued in the full and correct name of the regulated party to whom the certificate, registration, or license or other right is, or is to be issued. In the case of a partnership, all partners shall be named.

 (e) Cancellation notice. Except as provided in subsection (f), surety bonds, certificates of insurance and other securities or agreements may not be cancelled or withdrawn until after 30 days notice in writing has been issued by the insurance company, surety, motor carrier, broker or other party, to the Director. The period of 30 days begins from the date the Director provides notice of acceptance as provided in subsection (c)(2).

 (f) Termination by replacement. Certificates of insurance and surety bonds which have been accepted by the Authority under this chapter may be replaced by other certificates of insurance, surety bonds or other security, and the liability of the retiring insurer or surety under the certificates of insurance or surety bonds shall be considered as having terminated as of the effective date of the replacement certificate of insurance, surety bond or other security, if the replacement certificate, bond or other security is acceptable to the Authority under this chapter.

 (g) Refusal to accept or revocation by the Authority of surety bonds. The Authority may refuse to accept or may revoke its acceptance of a surety bond, certificate of insurance or other securities or agreements if, in its judgment, the security does not comply with this subchapter or fails to provide satisfactory or adequate protection for the public. Revocation of acceptance of a certificate of insurance, surety bond or other security does not relieve the regulated party from compliance with this subchapter.

 (h) Compliance. Failure to maintain evidence of insurance on file with the Authority in accordance with this chapter may cause the rights and privileges issued to the regulated party to be placed out of service immediately as provided in § 1003.32 (relating to out of service designation). The Authority may establish rules under which suspended rights and privileges may be temporarily reinstated pending compliance with this subpart.

§ 1025.3. Insurance required.

 (a) A regulated party may not engage in taxicab service and the certificate of public convenience will not be issued or remain in force, except as provided in § 1025.4 (relating to applications to self-insure) until there has been filed with and approved by the Authority a certificate of insurance by an insurer authorized to do business in this Commonwealth, to provide for the payment of valid accident claims against the insured for bodily injury to or the death of a person, or the loss of or damage to property of others resulting from the operation, maintenance or use of a taxicab in the insured authorized service.

 (b) The liability insurance maintained by a taxicab certificate holder must conform to 75 Pa.C.S. Chapter 17 (relating to Motor Vehicle Financial Responsibility Law). First party coverage of the taxicab driver of taxicabs must meet the requirements in 75 Pa.C.S. § 1711 (relating to required benefits).

 (c) The certificate holder's loss history with a current or former insurer shall be released to the Authority within 3 business days of a request by the Authority. The certificate holder shall authorize any release required by the insurer to facilitate the timely delivery of the loss history to the Authority.

 (d) The Authority may direct insurers to file proof of insurance both electronically and in hard copy.

 (e) The limits in subsection (b) do not include the insurance of cargo.

§ 1025.4. Applications to self-insure.

 (a) A taxicab or limousine certificate holder may file an application with the Authority to act as self-insurer of all or part of its bodily injury, property damage or cargo damage claims. In support of its application, the applicant shall submit a true and accurate statement of its financial condition which establishes its capability to satisfy its insurance obligations as they become due, a self-insurance plan which includes adequate security to protect the public and a description of its safety program including its past accident record. A self-insurance applicant shall agree in the application to grant the Authority power to rescind approval of self-insurer status, without hearing, if the Authority determines that the public interest demands it.

 (b) In reviewing self-insurance applications, the Authority will examine the following factors in determining whether approval will be granted:

 (1) The net worth of the certificate holder in relationship to the size of its operation and the nature and extent of its request for self-insurer status. The evidence must demonstrate the certificate holder's financial capability to adjust and pay insurance obligations as they become due before approval will be granted.

 (2) The organization of the certificate holder's proposed self-insurance program including the adequacy of security to protect the public. Security may be in the form, but is not limited to, one or more of the following:

 (i) Reserves.

 (ii) Sinking funds.

 (iii) Third party financial guarantees.

 (iv) Parent company or affiliate sureties.

 (v) Excess insurance coverage.

 (vi) Other similar arrangements.

 (3) The effectiveness of the certificate holder's safety program. The Authority will look closely at the average number and average cost of accident losses over the past three years in determining whether self-insurance is feasible.

 (c) Authority approval of a self-insurance application may be made conditional on revisions in the applicant's proposed self-insurance plan, safety program or standards for adjustment and payment of claims, as well as requirements of periodic financial filings with the Authority.

 (d) Authority approval of self-insurance status is subject to the issuance of a self-insurance certificate to the motor carrier by the Department of Transportation as required under 67 Pa. Code § 223.5 (relating to certificate) for vehicles registered in this Commonwealth.

§ 1025.5. Standards for adjustment and payment of claims.

 Common carriers by motor vehicle, who are responsible to the public for adjustment or payment of bodily injury, property damage or cargo damage claims, or both, are prohibited from:

 (1) Misrepresenting pertinent facts relating to claims at issue.

 (2) Failing to acknowledge and act promptly upon written or oral communications with respect to insurance claims.

 (3) Failing to adopt and implement reasonable standards for the prompt investigation of claims.

 (4) Refusing to pay claims without conducting a reasonable investigation based upon available information.

 (5) Failing to affirm or deny responsibility for claims within a reasonable time after proof of loss statements have been completed and communicated to the carrier or its representative.

 (6) Not attempting in good faith to effectuate prompt, fair and equitable settlements of claims in which the carrier's liability has become reasonably clear.

 (7) Compelling persons to institute litigation to recover amounts due by offering substantially less than the amounts due and ultimately recovered in actions brought by those persons.

 (8) Making claim payments to claimants not accompanied by a statement defining which payments are being made.

 (9) Making known to claimants a policy of appealing from arbitration awards in favor of claimants to induce or compel them to accept settlements or compromises less than the amount awarded in arbitration.

 (10) Delaying the investigation or payment of claims by requiring a physician to submit a preliminary claim report and then requiring the subsequent submission of formal proof of loss forms, both of which submissions contain substantially the same information.

 (11) Failing to promptly provide a reasonable explanation in relation to the facts or applicable law for denial of a claim or for the offer of a compromise settlement.

§ 1025.6. Additional requirements.

 (a) Providers of policies of insurance and surety bonds shall summarize as a separate attachment from its policy any and all deviations of the policy from the standard ISO form. The insurer shall have the insured sign the attachment to the policy.

 (b) If a provider of a policy of insurance or surety bond is a surplus lines carrier, a Form 1609-PR of the Insurance Department shall be submitted along with the Form E. The Authority reserves the right to have surplus line carriers demonstrate denial of coverage from insurance carriers that the Authority may be aware is providing admitted coverage, if any.

CHAPTER 1027. SALE OF RIGHTS

Sec.

1027.1.	Purpose.
1027.2.	Transferable rights.
1027.3.	Authority approval of sale of rights.
1027.4.	Certificate required for medallion sales.
1027.5.	Agreement of sale.
1027.6.	Application for sale of transferable rights.
1027.7.	Required application information.
1027.8.	Additional application requirements.
1027.9.	Financial fitness generally.
1027.10.	Regulatory compliance review.
1027.11.	Authority review.
1027.12.	Approval process and closing on sale.
1027.13.	Settlement sheet.
1027.14.	Attachment of medallion.
1027.15.	Commencement of service.

§ 1027.1. Purpose.

 This chapter establishes and prescribes Authority regulations and procedures for the sale of certain rights issued by the Authority.

§ 1027.2. Transferable rights.

 Only the following rights may be subject to sale:

 (1) A certificate of public convenience to provide partial-rights taxicab service.

 (2) A certificate of public convenience to provide dispatching services.

 (3) A medallion.

 (4) A certificate of public convenience to provide limousine service as provided in Subpart C (relating to limousines).

§ 1027.3. Authority approval of sale of rights.

 (a) Sale of transferable rights. The sale of transferable rights without advance approval of the Authority is void by operation of law.

 (b) Sale of securities in transferable rights. The sale of securities in an entity that owns transferable rights will be considered a sale under this chapter in either of the following circumstances:

 (1) The securities to be transferred equal or exceed 2% of the issued securities in the entity that holds an ownership interest in a transferrable right.

 (2) Upon completion of the transfer the buyer will own 2% or more of the issued securities in the entity that holds an ownership interest in a transferrable right.

 

 (c) New certificate number. The Authority may assign a new certificate number to the rights sold to an approved buyer.

§ 1027.4. Certificate required for medallion sales.

 (a) The proposed buyer of a medallion shall own a medallion taxicab certificate on or before the date of transfer.

 (b) A proposed buyer that does not own a medallion taxicab certificate on the date the sale application is filed shall request a new medallion taxicab certificate through the sale application as provided in § 1027.6 (relating to application for sale transferable rights).

§ 1027.5. Agreement of sale.

 (a) The parties to a proposed sale of transferable rights shall complete an agreement of sale detailing the terms of the transaction, including provisions required by this chapter, and file the agreement with the Director.

 (b) An agreement of sale for transferable rights is void by operation of law if not executed by all parties in the presence of the Director or a designee.

§ 1027.6. Application for sale of transferable rights.

 (a) Application documents.

 (1) To initiate a sale, the owner and proposed buyer shall file an original and one copy of Form No. SA-1 ''Sale Application,'' the agreement of sale or transfer and other documents required by this chapter. The proposed buyer will be considered the applicant. The SA-1 is available at www.philapark.org/tld.

 (2) The SA-1 shall be filed in person with the Director.

 (3) The Director will refuse to accept an application which is incomplete for any reason.

 (4) Upon acceptance, the Director will submit a copy of the application documents to the Clerk and an application docket number will be assigned.

 (b) Application signatures.

 (1) Both parties to the sale shall execute the SA-1 in the presence of the Director or a designee.

 (2) Except for individuals, an original executed and notarized resolution from the buyer and seller authorizing the execution of the sale documents must be included with the filing of the SA-1.

 (3) The Authority may permit an SA-1 to be executed by an attorney-in-fact if the owner or proposed buyer are unable to appear and as provided in § 1001.28 (relating to power of attorney), in which case the owner will be required to attend the closing on the sale.

 (c) Verification and payment. The SA-1 must be verified under § 1001.36 (relating to verification and affidavit) and be accompanied by payment of the transfer fee as provided in §§ 1001.42 and 1001.43 (relating to mode of payment to the Authority; and Authority fee schedule).

 (d) Multiple rights. The SA-1 may be used to sell an unlimited number of transferable rights from one owner to one proposed buyer.

 (e) Broker. Documents intended for submission to the Director as part of the sale process shall be prepared by a broker registered with the Authority as provided in Chapter 1029 (relating to brokers) or an attorney admitted to practice law by the Supreme Court of Pennsylvania.

§ 1027.7. Required application information.

 (a) SA-1 form. The SA-1 is a multipurpose form intended for use in the sale of different transferable rights and shall be completed by the broker or attorney, or both, in a manner consistent with the intentions of the sale. For example, an SA-1 used only for the sale of a partial-rights certificate need not complete the portion of the application which seeks medallion numbers.

 (b) Required information. Except as provided in subsection (a), the completed SA-1 must include the information required by the Authority, including the following:

 (1) The medallion numbers.

 (2) The certificate numbers.

 (3) The name of the proposed buyer and contact information, including a telephone number, an email address and a facsimile number.

 (4) If the proposed buyer is a nonindividual person and is not already a certificate holder, a contemporaneous certificate of good standing for the proposed buyer issued by the Corporation Bureau within 30 days of filing the SA-1.

 (5) The name of any holding company as defined in § 1011.2 (relating to definitions) having an interest in the proposed buyer and a contemporaneous certificate of good standing for the holding company from the Corporation Bureau, or similarly authorized entity in another jurisdiction in the United States.

 (6) The trade name, if any, of the proposed buyer and a copy of the trade name registration certificate, if applicable.

 (7) The mailing address and physical address of the proposed buyer.

 (8) A statement of the proposed buyer's corporate purpose, if applicable.

 (9) A list, including name, home address and telephone numbers for current corporate officers, directors, stockholders, key employees and persons with controlling interests as defined in § 1011.2, if applicable.

 (10) A list of all Authority, PUC and Federal common carrier rights held by the proposed buyer and any of the persons listed in response to paragraph (9), including taxicab medallions.

 (11) The name, address, telephone number, facsimile number and email address of any attorney assisting the proposed buyer with the application process, together with an acknowledgement that § 1029.3 (relating to use of attorney) has been reviewed by the proposed buyer.

 (12) A certified criminal history report, issued within 30 days of the filing of the application, from any jurisdiction in which the following persons have lived in the preceding 5 years through the date of application:

 (i) An individual proposed buyer.

 (ii) An individual with a controlling interest in the proposed buyer.

 (iii) An individual with a controlling interest in the holding company of a proposed buyer.

 (iv) A key employee.

 (13) A verified statement indicating that the persons identified in paragraph (11) have not been subject to a conviction as defined in § 1001.10 (relating to definitions) and that the proposed buyer has read and understands the prohibitions of ownership as provided in § 1011.5 (relating to ineligibility due to conviction or arrest).

 (14) Verified statements from the owner and proposed buyer confirming that each are in compliance with § 1011.7 (relating payment of outstanding fines, fees and penalties).

 (15) The Federal Tax Identification number for the following persons:

 (i) The owner of the rights.

 (ii) The proposed buyer.

 (iii) Persons with a controlling interest in the owner or a proposed buyer.

 (iv) Key employees of an owner or proposed buyer.

 

 (c) Proof of ownership. The Authority may require the owner to prove ownership of the right or rights subject to sale.

§ 1027.8. Additional application requirements.

 

 (a) Agreement of sale. The agreement of sale required under this chapter must include the information required by the Authority, including the following:

 (1) The parties to the transaction.

 (2) A description of the transaction.

 (3) The identification number of each right subject to sale.

 (4) The total consideration for the sale and for each right transferred if the sale involves multiple rights in United States dollars, and any payment terms required by the Authority, including the following:

 (i) The assumption of any loan or debt.

 (ii) Contingencies and nonmonetary consideration.

 (iii) Monetary consideration.

 (5) An acknowledgement initialed by all parties that the agreement is subject to the laws and jurisdiction of the Commonwealth, the act, this part and orders of the Authority.

 

 (b) Execution of agreement of sale. The proposed agreement of sale must be signed at one time by all parties before the Director or a designee on or before the date the SA-1 is filed.

 

 (c) Removal of liens. If a notice of lien relating to a medallion which is the subject of a proposed sale was filed under 13 Pa.C.S. (relating to Uniform Commercial Code), the Authority will not approve a medallion sale until evidence of a lien's removal is submitted, unless the Authority is notified by the lienholder that the lien will be satisfied from the proceeds of the sale.

 (d) Continuing service. The owner of the rights subject to sale shall confirm that the rights will remain in active service pending review of the application, unless prohibited or authorized for suspension by a provision of this part or an order of the Authority.

 (e) Notice.

 (1) A notice of applications will be published in the Pennsylvania Bulletin as provided in § 1003.53 (relating to applications requiring notice).

 (2) The parties to the sale will receive notices related to the SA-1 as provided in § 1001.51 (relating to service by the Authority).

 (f) Loan documents.

 (1) Any consideration identified in subsection (a)(4) that is provided to a proposed buyer must be evidenced in the form of written agreements. For example, the loaning of cash money to a proposed buyer by a bank must be confirmed through loan documents executed by the borrowing party.

 (2) The documents required under paragraph (1) shall be submitted to the Director at the time the SA-1 is filed, except that specific financial information that cannot be known until on or about the closing date for the sale may be left blank. The final loan documents must be executed at the closing on the sale.

§ 1027.9. Financial fitness generally.

 The Authority will review the financial fitness of the proposed buyer, including a review of the following:

 (1) For proposed buyers of medallions or partial-rights certificates, bank statements of the proposed buyer or the bank statements of the holder of the stock or membership certificate evidencing ownership of a bank account holding not less than the greater of $5,000 or 2% of the sale price in unencumbered and available funds.

 (2) For proposed buyers of dispatcher certificates, bank statements of the proposed buyer or the bank statements of the holder of the stock or membership certificate evidencing ownership of a bank account holding not less than the greater of $5,000 or 2% of the sale price in unencumbered and available funds.

 (3) The credit report of each of the persons identified in § 1027.7(b)(12) (relating to required application information) evidencing a credit score of at least 600 for each person.

 (4) The absence of any outstanding and unappealed civil judgments against each of the parties required to submit a criminal history report under § 1027.7(b)(12).

 (5) The Authority may require the submission of additional financial information necessary to determine the financial fitness of a proposed buyer.

§ 1027.10. Regulatory compliance review.

 (a) An SA-1 will be denied if the proposed buyer has a record of regulatory violations with the Authority or the PUC which evidences a disregard for the public interest.

 (b) The SA-1 will be denied if the proposed buyer or any person with a controlling interest in the proposed buyer or a key employee of the proposed buyer has been subject to the suspension, revocation or cancellation of rights issued by the Authority or common carrier rights issued by the PUC during the 1-year period immediately preceding the date the SA-1 was filed with the Authority.

§ 1027.11. Authority review.

 (a) Notice of sale will be published in the Pennsylvania Bulletin.

 (b) The SA-1 will be reviewed as provided in § 1003.51 (relating to applications generally).

 

 (c) The SA-1 will be denied if the proposed buyer or any person with a controlling interest in the proposed buyer or a key employee of the proposed buyer is in violation of any provision of this part or if the Authority determines that the sale is not in the public interest. The SA-1 may be denied if the owner is in violation of any provision of this part.

 (d) The Authority will review the terms of any loan associated with an SA-1 and deny the application in the circumstances in this subsection. The terms of any loan associated with an SA-1 are likely to lead to a condition of default by the proposed buyer. The Authority will specifically review the following provisions of any loan agreement to assure it does not conflict with the public interest:

 (1) The term.

 (2) The interest rate or rates, including any adjustable rate or balloon provisions.

 (3) Late payment grace periods.

 (4) Conditions of default.

 (5) Periods in which defaults may be cured.

 (6) The qualifications, experience and history of the lender related to commercial loans and loans to public utilities.

§ 1027.12. Approval process and closing on sale.

 (a) If the Director determines that a proposed buyer of rights is qualified as provided in the act, this part or an order of the Authority, a recommendation to approve the sale will be presented to the Authority for approval at its next regularly scheduled meeting. The Authority may require that proposals from the Director as provided in this section first be presented to a committee of the Board at a public meeting.

 (b) Upon approval of the sale by the Authority, the Director will schedule the parties to meet at a time and location where an Authority staff member will witness the closing of the transaction.

 (c) An Authority staff member shall witness the execution of each document by the owner and proposed buyer, or their designated agents. Any closing not witnessed by Authority staff is void as provided in sections 5711(c)(5) and 5718 of the act (relating to power of authority to issue certificates of public convenience; and restrictions).

 (d) If the subject of the sale is a medallion that is the only medallion issued to the owner's medallion taxicab certificate, that certificate will be cancelled upon completion of the closing on the sale of the medallion. For example, if the owner of only one medallion seeks to sell the medallion through the process provided in this chapter, the owner's medallion taxicab certificate will be cancelled upon closing on the sale of the medallion.

 (e) The Authority will issue a new medallion taxicab certificate to the new medallion owner as part of the closing process if requested by the proposed buyer as provided in § 1027.4(b) (relating to certificate required for medallion sales).

 (f) A medallion subject to a completed closing may not be transferred or sold for 1 year from the date of closing.

§ 1027.13. Settlement sheet.

 (a) The owner and proposed buyer shall use Form SA-2 ''Standard Settlement Sheet'' at any closing on the sale of rights. The SA-2 is available on the Authority's web site at www.philapark.org/tld.

 (b) The SA-2 must include the information required by the Authority, including the following:

 (1) The names and addresses of the owner and proposed buyer.

 (2) The names and address of the brokers or attorneys used in the transaction.

 (3) The name and address of the lender and a designated contact person employed by the lender, if any.

 (4) A copy of all certificates or other documents authorizing the lender to make commercial loans in this Commonwealth.

 (5) The amount, term and interest rate of any loan used to purchase the rights.

 (6) The medallion numbers.

 (7) The certificate numbers.

 (8) The total consideration for the rights to be sold and any payment terms, including loan contingencies and nonmonetary consideration.

 (9) An allocation of funds expended in the transaction.

 (10) The fees and costs associated with the sale, including those payable to any broker or attorney, or both.

 (11) Signatures of the owner and proposed buyer, or their designated agents, and the brokers.

§ 1027.14. Attachment of medallion.

 Upon the completion of the closing on the sale of a medallion, the Enforcement Department will schedule a date and time to attach the medallion to the taxicab designated by the owner in a manner consistent with § 1013.2 (relating to attachment of a medallion).

§ 1027.15. Commencement of service.

 A regulated party shall, within 30 days from the date of receipt of a certificate, begin operating and furnishing service. If it has not commenced operating and furnishing the authorized service within 30 days, appropriate proceedings shall be initiated to terminate the certificate unless, upon advanced written permission as provided in § 1011.14 (relating to voluntary suspension of certificate), the time for commencement of service is extended.

CHAPTER 1029. BROKERS

Sec.

1029.1.	Purpose.
1029.2.	Use of broker.
1029.3.	Use of attorney.
1029.4.	Ineligible persons for broker certification.
1029.5.	Broker registration.
1029.6.	Broker training.
1029.7.	Broker testing.
1029.8.	Broker registration approval.
1029.9.	Broker representation letter.
1029.10.	Broker agreements required.
1029.11.	Professional liability insurance.
1029.12.	Broker duties.
1029.13.	Disclosure of interest.
1029.14.	Broker conduct and obligations.
1029.15.	Duty to deposit money belonging to another into escrow account.
1029.16.	Nonwaiver of escrow duty.
1029.17.	Deadline for depositing money into escrow account.
1029.18.	Escrow account.
1029.19.	Prohibition against commingling or misappropriation.
1029.20.	Procedure when entitlement to money held in escrow is disputed.
1029.21.	Escrow records.
1029.22.	Broker in possession of medallion.

§ 1029.1. Purpose.

 (a) This chapter establishes and prescribes Authority regulations and procedures for the registration of individuals as brokers for the sale and transfer of medallions and certificates. Unless the context indicates otherwise, the provisions of this chapter apply to the sale of certificates of public convenience or medallions as provided by this subpart and Subpart C (relating to limousines).

 (b) An individual authorized to act as a broker by the Authority on December 3, 2011, shall immediately comply with this chapter before the first registration renewal required under § 1011.3 (relating to annual rights renewal process).

§ 1029.2. Use of broker.

 (a) A broker shall be used by the parties to the sale of rights, except as provided in § 1029.3 (relating to use of attorney). A single broker may represent both parties in a transaction. The Authority will maintain a list of brokers, which may be obtained at www.philapark.org/tld.

 (b) A person may not act as a broker without having been registered by the Authority under this chapter.

§ 1029.3. Use of attorney.

 A party may use an attorney admitted to practice law before the Supreme Court of Pennsylvania in lieu of a broker.

§ 1029.4. Ineligible persons for broker certification.

 An applicant is ineligible to be a broker if in violation of the act, this part or an order of the Authority, including the following:

 (1) Upon conviction or arrest as provided in § 1011.5 (relating to ineligibility due to conviction or arrest).

 (2) The applicant does not speak, read and write the English language sufficiently to draft and review transactional documents as required by the act, this part or an order of the Authority.

 (3) The applicant provides false information in any document submitted to the Authority.

 (4) The applicant is in violation of § 1011.7 (relating to payment of outstanding fines, fees and penalties).

 (5) The applicant is 20 years of age or younger.

 (6) The applicant has failed to satisfactorily complete broker testing as provided in this chapter.

§ 1029.5. Broker registration.

 (a) General. To obtain a broker registration, an individual shall complete and file a Form BR-1 ''Broker Application,'' along with the application fee as provided in §§ 1001.42 and 1001.43 (relating to mode of payment to the Authority; and Authority fee schedule). The BR-1 may be obtained on the Authority's web site at www.phila park.org/tld.

 (b) BR-1 application. The completed BR-1 shall be verified as provided in § 1001.36 (relating to verification and affidavit) and be filed with the Director in person and include the information required by the Authority, including the following:

 (1) The name of the applicant and contact information, including a mailing address, a telephone number, an email address and a facsimile number.

 (2) A list of all Authority rights, common carrier rights issued by the PUC, and other transportation rights issued by any jurisdiction outside of this Commonwealth in which the applicant has any controlling interest.

 (3) The name, address, telephone number, facsimile number and email address of any attorney or broker, or both, assisting the applicant through the Authority's broker registration process.

 (4) A certified criminal history report, issued within 30 days of the filing of the application from any jurisdiction in which the following individuals have lived during the last 5 years:

 (i) The applicant.

 (ii) Each key employee of the applicant.

 (5) A written statement verified as provided in § 1001.36, which provides that:

 (i) The applicant and each key employee have not been subject to a conviction as provided in § 1001.10 (relating to definitions).

 (ii) The applicant and each key employee are in compliance with § 1011.7 (relating to payment of outstanding fines, fees and penalties).

 (iii) The applicant and each key employee are current on all reports due in relation to other rights issued by the Authority.

 (iv) The applicant can comply with the requirements in this chapter.

 (6) A completed original of Form No. BR-5 ''Business Experience Questionnaire.'' A copy of the BR-5 may be obtained on the Authority's web site at www.phila park.org/tld.

 (7) The applicant's Social Security number.

 (8) A copy of the applicant's Social Security card or documents confirming a legal permanent resident status or an alien authorized to work status, if applicable.

 (9) The applicant's driver's license or other government issued photographic identification.

 (10) A resume detailing the applicant's work history for the 5 years preceding the filing of the BR-1 and qualifications to be a broker.

§ 1029.6. Broker training.

 

 (a) Upon submission of a BR-1 application under § 1029.5 (relating to broker registration), an applicant may be scheduled by the Authority to attend an in-class training program upon request of the applicant. The Authority, or its authorized agent, will conduct the training.

 

 (b) Broker training will consist of a minimum of 2 hours of instruction developed to address all areas of the Authority's regulations with emphasis on the following subjects:

 (1) Eligibility to be a certificate owner, dispatcher and medallion owner.

 (2) The forms and records required to complete a sale of rights.

 (3) An overview of frequently encountered subjects in the Authority's regulations, including the following:

 (i) Authority regulations governing certificate owners.

 (ii) Authority regulations governing equipment.

 (iii) Penalties for violation of Authority regulations.

 (iv) An overview of the administrative process related to the sale of rights.

 (v) The identification and address of the Authority office responsible for administering the act.

 (c) It is within an applicant's discretion to discontinue training and request the scheduling of broker testing as provided in § 1029.7 (relating to broker testing) through written notice to the Manager of Administration.

§ 1029.7. Broker testing.

 (a) The applicant will be scheduled by the Authority for broker testing. Testing will be rescheduled upon the request of the applicant to permit completion of broker training as provided in § 1029.6 (relating to broker training) or to address an applicant's scheduling conflict.

 (b) The broker test will focus on the subjects identified in § 1029.6.

 (c) The Authority will develop a test to assure that applicants for broker registration understand the subjects identified in § 1029.6.

 (d) The test will be administered in the English language. The assistance of interpreters will not be permitted.

 (e) Except as limited under this chapter, the test may be administered in a manner and in a form deemed appropriate by the Authority. The test may include:

 (1) Questions requiring a written response.

 (2) Multiple choice questions.

 (3) Oral questions.

 (4) The demonstration of an ability to complete all of the documents necessary to sell transferable rights.

 (5) The demonstration of an ability to read, write and speak the English language as required by this part.

 (f) An applicant may take the test required by this chapter more than three times.

 (g) Failure to pass the test required by this section within 90 days of the filing of the BR-1 application as provided in § 1029.5 (relating to broker registration) will render the application void.

 (h) Upon the denial or voiding of a BR-1 as provided in this chapter, an applicant may not reapply for registration for 6 months.

§ 1029.8. Broker registration approval.

 (a) If the BR-1 and related broker application documents demonstrate that the applicant is in compliance with the Authority's regulations and the applicant has passed the broker testing under § 1029.7 (relating to broker testing), the Authority will issue a broker registration letter to the applicant and place the applicant's name on the list of brokers maintained by the Authority.

 (b) The broker registration letter will confirm the individual's broker status with the Authority and list an expiration date, which will be 1 year from the date of issuance, and contain other information and guidance as the Authority deems appropriate.

 (c) The broker registration letter shall be displayed prominently in the broker's office.

 (d) The broker registration letter may be served upon the broker by email.

§ 1029.9. Broker representation letter.

 A broker retained by a party to a sale of rights subject to the act shall file Form BR-2 ''Broker Representation Letter'' with the Authority on or before the date a sale application is filed with the Authority. The BR-2 may be obtained on the Authority's web site at www.phila park.org/tld.

§ 1029.10. Broker agreements required.

 (a) A broker shall have a written agreement with each client that clearly identifies the broker's client or clients, the scope of services to be performed and the consideration to be paid by each client upon completion of the closing on the sale as provide § 1027.12 (relating to approval process and closing on sale).

 (b) A broker shall confirm that a power of attorney signed by a client complies with § 1001.28 (relating to power of attorney).

 (c) A broker may not offer an Authority issued right for sale unless authorized in advance and in writing by the owner of the right.

 (d) A broker agreement that creates an exclusive listing relationship must include as a signed and notarized addendum Form BR-3 ''Broker Exclusive Listing'' to confirm the understanding of a broker's client or clients that an exclusive relationship exists and its term. The BR-3 may be obtained at www.philapark.org/tld. An exclusive listing may not be extended beyond the termination date in the BR-3 unless a new BR-3 is signed and dated by the client as provided in this section.

 (e) If a broker intends on participating in a sale of rights as an insurance broker, automobile dealer or in some other capacity in addition to that of a broker, the exact nature of the nonbroker roll, and the consideration associated with that roll, shall be disclosed in writing to the broker's client and filed with the Authority along with the BR-2. If the nonbroker roll is developed after the filing of the BR-2, the disclosure shall be made to the client and filed with the Authority immediately.

§ 1029.11. Professional liability insurance.

 (a) A broker shall continuously maintain professional liability insurance in the amount of $50,000, including coverage for errors and omissions caused by the broker's negligence in the performance of duties from an insurer authorized to do business in this Commonwealth.

 (b) A broker registration will not be issued or renewed unless confirmation of required insurance has been filed with the Authority as provided in § 1025.2 (relating to insurance forms and procedures).

§ 1029.12. Broker duties.

 The following duties are owed by a broker to a client in the sale of rights subject to the act and may not be waived:

 (1) Exercising reasonable professional skill and care.

 (2) Dealing honestly and in good faith and maintain confidentiality.

 (3) Presenting, in a reasonably practicable period of time, all offers, counteroffers, notices and communications to and from the parties in writing, unless the rights at issue are subject to an existing SA-1 and the seller has agreed in a written waiver.

 (4) Providing advanced written disclosure in a reasonably practicable period of time of all conflicts of interest and financial interests required by this chapter.

 (5) Advising the client to seek expert advice on matters about the sale that are beyond the broker's expertise.

 (6) Ensuring that all services are provided in a reasonable, professional and competent manner.

 (7) Keeping the client informed about offers to purchase rights, the sale and tasks to be completed.

 (8) Providing assistance with document preparation.

 (9) Advising the client about compliance with laws and regulations pertaining to the rights at issue without rendering legal advice.

 (10) Providing a copy of all documents prepared or maintained by the broker on behalf of the client to the client at or before the date the sale closes or otherwise immediately upon request.

§ 1029.13. Disclosure of interest.

 

 (a) A broker may only participate in a transaction involving rights subject to the act in which the broker has an interest after first disclosing that interest in writing to all parties concerned.

 

 (b) A broker may not represent, or purport to represent, more than one party to a sale of rights subject to the act without the written consent of all parties concerned.

 

 (c) A broker who provides financial services, insurance or mechanical repair services may not require a client to use any of these services.

 (d) If the client chooses to use any of the services referenced in subsection (c), the broker shall provide the client with a written disclosure of any financial interest, including a referral fee or commission that the broker may earn. The disclosure required under this paragraph shall be made at the time the broker first advises the client that an ancillary service is available or when the broker first learns that the client will be using the service.

 (e) A broker has a continuing obligation to disclose to a client, any conflict of interest in a reasonably practicable period of time after the broker learns or should have learned of the conflict of interest.

§ 1029.14. Broker conduct and obligations.

 (a) A broker may not give assurances or advice concerning an aspect of rights subject to sale that the broker knows, or reasonably should be expected to know, is incorrect, inaccurate or improbable.

 (b) A broker is not required to independently verify the accuracy or completeness of any representation made by the clients to a sale which the broker reasonably believes to be accurate and reliable.

 (c) A broker is not liable for the acts of a client unless the client is acting at the express direction of the broker or as a result of a representation by a broker reasonably relied on by the client.

 (d) A broker shall keep and maintain records related to its clients and each sale in which it participates in any manner as provided in § 1011.11 (relating to record retention), including the following records:

 (1) The names and addresses of buyers, sellers, lenders or lienholders, if any.

 (2) The purchase price.

 (3) The amount of deposit paid on the contract.

 (4) The amount of commission paid to the broker.

 (5) The expenses of procuring financing, if any.

 (6) Closing statements.

 (e) Upon suspension or cancellation of a broker's registration with the Authority, no other broker may use the services of the former broker, as an employee or otherwise, to perform broker related services.

 (f) An advertisement placed by a broker related to the sale of rights subject to the act must indicate that the advertiser is a registered broker. A broker may not use deceptive or misleading advertising.

§ 1029.15. Duty to deposit money belonging to another into escrow account.

 A broker shall deposit money that the broker receives belonging to another into an escrow account in a Federally- or State-insured bank or depository to be held pending consummation of the sale of rights subject to the act or a prior termination thereof that does not involve a dispute between the parties to the sale, at which time the broker shall pay over the full amount to the party entitled to receive it.

§ 1029.16. Nonwaiver of escrow duty.

 A broker's escrow duty may not be waived or altered by an agreement between the parties to the sale, between the broker and the parties, or between the broker and other brokers who may be involved in the sale.

§ 1029.17. Deadline for depositing money into escrow account.

 (a) Except as provided in subsection (b), a broker shall deposit money belonging to another into one escrow account by the end of the next business day following its receipt in the broker's office.

 (b) If the money of another has been tendered to the broker in the form of a check under an offer to purchase or lease a right subject to the act, the broker may, with the written permission of both the buyer and the seller or the lessee and the lessor, refrain from depositing the money into an escrow account by the deadline in subsection (a) pending the seller's or lessor's acceptance of the offer. In those cases, the broker shall deposit the check into an escrow account within 1 business day of the seller's or lessor's acceptance of the offer.

 (c) A broker shall notify each client of the bank's name, address and the account number of each account holding escrowed funds related to the sale.

 (d) Upon request, a broker shall notify the owner of the escrowed funds of the name, address and account number of the account holding in escrow. For purposes of this subsection, the owner of the escrowed funds is the party that provided the funds to the broker for placement in escrow.

§ 1029.18. Escrow account.

 (a) A broker escrow account must:

 (1) Be maintained in a Federally- or State-insured bank or recognized depository.

 (2) Designate the broker as trustee.

 (3) Provide for the withdrawal of funds without prior notice.

 (4) Be used exclusively for escrow purposes.

 (b) If money is expected to be held in escrow for more than 6 months, the broker is encouraged to deposit the money into an interest-bearing escrow account. Interest earned on an escrow account shall be held and disbursed, pro rata, in the same manner as the principal amount, unless the parties to the transaction direct otherwise by agreement. A broker may not claim the interest earned on an escrow account.

 (c) Upon request, a broker shall provide the Authority with its records related to any escrow accounts maintained during the past 5 years or authorize the release of the records by each bank or recognized depository.

§ 1029.19. Prohibition against commingling or misappropriation.

 (a) Except as provided in subsection (b), a broker may not commingle money that is required to be held in escrow or interest earned on an escrow account, with business, personal or other funds.

 (b) A broker may deposit business or personal funds into an escrow account to cover service charges assessed to the account by the bank or depository where the account is located or to maintain a minimum balance in the account as required by the regulations of the bank or depository.

 (c) A broker may not misappropriate money that is required to be held in escrow or interest earned on an escrow account, for business, personal or other purposes.

§ 1029.20. Procedure when entitlement to money held in escrow is disputed.

 If a dispute arises between the parties to a sale over entitlement to money that is being held in escrow by a broker, the broker shall retain the money in escrow until the dispute is resolved. If resolution of the dispute appears remote without legal action, the broker may, following 30 days' notice to the parties, petition the Philadelphia Court of Common Pleas to interplead the rival claimants.

§ 1029.21. Escrow records.

 A broker shall keep records of moneys received by him that are required to be held in escrow and shall produce the records for examination by the Authority or its authorized representatives upon written request. The records must contain the following information:

 (1) The name of the party from whom the broker received the money.

 (2) The name of the party to whom the money belongs.

 (3) The name of the party for whose account the money is deposited.

 (4) The date the broker received the money.

 (5) The date the broker deposited the money into the escrow account.

 (6) The date the broker withdrew the money from the escrow account.

§ 1029.22. Broker in possession of medallion.

 If a medallion has been deposited with a broker, the broker shall deliver the medallion to the Authority for placement into storage within 48 hours of receipt.

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